SEC Exposes Massive Compliance Failures at JP Morgan

In this video we go over a recent case of JP Morgan being fined $200 million for allowing widespread use of unauthorized and untraceable messaging apps to conduct sensitive business activities. This was in violations of US securities laws.

#Wallstreetmillennial

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Creative Commons — Attribution-ShareAlike 3.0 Unported — CC BY-SA 3.0
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[williamlloyd]

Having worked at several banks, I’m sure they would have had yearly compliance training for all employers and additional training for staff in sensitive positions on this topic. They knew they were breaking the law.

[duncanhamilton]

It's a straight gamble. Keep failing to comply, make a ton of money underneath that non compliance, periodically get caught and fined a relatively cursory amount.

Repeat.

[hireahitCA]

"Cost of business" fines are simply never going to resolve problems caused by people who have calculators (or can recognize when their actions are more profitable than the fine without a calculator).

Attaching personal liability to the individuals AND upper management would be one solution, with mandatory prison time would get so many white-collar frauds solved promptly. (and no, serving house arrest in their private mansion is not sufficient). Combined with immunity, legal protection and compensation for whistleblowers will mean that all you need is one ethical employee OR one disgruntled employee who wants a payday to bring violations to the attention of the regulators.

But we can't have nice things, so we don't need to worry about any changes.

[Swordhero]

It’s almost not even their fault… they are incentivized to keep breaking laws as long as it makes more money than the fines

[xmen]

These executive crooks belong in prison more than the people already in them!!

[nictanzillo]

Ya but they probably paid far less than they made ... Charging them fines will never stop them from doing these things.. like normal ppl throw them in jail 🤦

[lazywallstreetnews]

As a former regulator, ex JPM employee and now a compliance officer, they knew what they were doing was wrong because they have yearly training for this. The funny thing is that this is so normal in the financial industry and $200 Million is nothing to a bank that big.

[tenzinpassang]

LMAO, i call this the Johnson & Jhonson approach. Jump the boundaries to make 3 billions and pay 800 million in penalties. We up 2.2 billion baby. 🤑🤑🤑🤑

[phuongha]

Just an other slap on the hand fines. On to the next fraud...

[wildbill]

Why does no one from the banking industry ever go to jail?

[cyrille]

Cant blame them
If I only had to pay a $10.00 fine after robbing someone of 100

Well, Stick em up!

[trinsit]

Corruption is beyond any ability to control. It's cracking

[timwhitman]

Wow.. thats a REALLY CHEAP cost of doing business...

[samsonsoturian]

I've heard people often talk about the unofficial statements investment bankers will say on the cellphones off the recorded lines. That's how rumors spread among market movers. Didn't realize that wasn't entirely legal.

[Bryanzebox]

JPM breaking rules..?!! No way.. impossible.. they’re the best bank in town :p

[jamesj.]

Fines will only work if they are in the trillions of dollars. 200M is a rounding error to JP Morgan.

[Phlegethon]

Lol in america these banks just pay the little fines no problems no consequences

[cyberant]

Their banking license should be revoked for multiple failure to comply as well as many many frauds...

[NotsoFree_StateofFlorida]

Government has got to stop slapping these banks on the wrist. The fines have got to HURT.

[geoffstrowger]

They've been branded as a "criminal organization" by one regulator. Why are they allowed to continue bleeding their clients?